Question

X, Y and Z have been sharing profits and losses in the ratio of $3:2:1$. Z retires. His share is taken over by X and Y in the ratio of $2:1$. The new profit sharing will be _________.

• A. $3:2$
• B. $1:1$
• C. $11:7$
• D. $2:1$

Answer 1

The correct option is C $11:7$

Old ratio ( X, Y and Z) = 3 ; 2 : 1

Z's share = 1/6

Share of Z taken by X = (1/6) * (2/3) = 1/9

Share of Z taken by Y = (1/6) * (1/3) = 1/18

New profit sharing ratio = Old ratio + Share taken from Z

X's new share = (3/6) + (1/9) = 11/18

Y's new share = (2/6) + (1/18) = 7/18

Therefore, new share of X : Y = 11 : 7